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Cash Transfers and Intra-Household Decision-Making in Uruguay

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  • Cecilia Parada

    (Universidad de La República)

Abstract

Variations in the incomes of a particular household member can lead to changes in their decision-making power within the household affecting several outcomes. This paper estimates the effects of the PANES program (Plan de Atención Nacional a la Emergencia Social), a cash transfer program focused on low-income households of Uruguay between 2005 and 2007, on four different outcomes: the probability of divorce, changes in household size, distribution of household chores, and the probability of women becoming heads of household. My identification strategy exploits the discontinuity in the program assignment of beneficiaries resulting from a continuous pre-treatment eligibility score. The program increased the probability of maintaining the same marital status and the stability of the household size. These results persist once beneficiaries stop receiving benefits, at least in the short term. No effects were found in the likelihood of performing household chores when considering all beneficiaries, but heterogeneous effects were observed depending on their gender. Despite women being the primary recipients of the program, no impacts were found on their probability of being heads of households. This paper shows how public policies can affect the private lives of program recipients on outcomes beyond the policy objectives. In particular, cash transfers and conditionalities can affect gender equality and the distribution of household chores.

Suggested Citation

  • Cecilia Parada, 2023. "Cash Transfers and Intra-Household Decision-Making in Uruguay," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 757-775, September.
    • Handle: RePEc:kap:jfamec:v:44:y:2023:i:3:d:10.1007_s10834-022-09856-x
    DOI: 10.1007/s10834-022-09856-x
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    More about this item

    Keywords

    Intra-household decisions; Cash transfers; Conditionalities; Divorce; Household chores; Gender differences;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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